How to Start a Food Truck Business in California

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Begin by selecting a unique business name, appointing a registered agent, and filing your Articles of Organization with the California State Corporation Commission, which includes a $100 processing fee.

You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 75% of our readers and hire a specialized California LLC formation service (recommended).

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What Is a Food Truck Business?

A food truck business can be a few types of things, depending on your plan. For example, you can cook the food in your truck and sell it from the window or sell snacks out of a truck. Additionally, you have to consider ice cream trucks and other more niche food options when it comes to food sales from a truck. Therefore, a food truck business becomes what you make of it.

Do You Need a Business License to Start a Food Truck Business in California?

You need a business license to start a food truck in California. In fact, you need several business licenses to sell food from a truck. You need to get a handful of permits and coordinate with people about where you can park and where you can prepare the food. For these reasons, it’s important to consider permits like a food seller’s permit, a Food Handler Permit, and a Food Safety Certification. These are only a few options, so make sure you learn more about what your specific food truck business will need.

How Much Money Do Food Trucks Make in California?

According to a survey done by Food Truck Nation, food trucks can make between $200,000 and $500,000 per year in revenue. This number can be higher or lower depending on where your truck is set up. For example, a food truck set up in San Francisco near a brewery will typically make more than an ice cream truck out in the suburbs. Additionally, there are expenses you need to pay out of that revenue. Staff wages, vehicle maintenance, and ingredients, just to name a few.

Ultimately, the amount of money a food truck makes in California varies significantly. It’s important to assess the risk before you start because it’s not always simple.

Where Can You Park a Food Truck in California?

There are many places to park your food truck in California, but you have to be careful because it’s illegal to park in some areas. The first thing to note is that laws that apply to parking in handicap spaces, near fire hydrants, bus stops, and crosswalks apply to your truck. You also need to follow any parking limits set by the location you plan on parking at. This will vary based on the town, and you may also have to pay fees for extended parking periods.

When it’s time to set up shop, make sure you get in touch with the owner of a business if you plan on parking in their lot. This can help you get permission to park your truck there. One of our favorite options is to park near a bar or brewery that doesn’t serve food; nothing is better than some buzzed people walking over and ordering away at your truck.

Other places you can park include public events, on the side of highways in designated areas, and even at parks. You’ll have to contact the city where you plan on working for more information about parking your food truck in California.

How to Start a Food Truck Business in California in 9 Easy Steps

A food truck business doesn’t have to be complicated to start, but you need to follow the appropriate steps if you want to get anywhere. Don’t miss anything, and make sure you remain in good standing with your paperwork to avoid problems.

That said, anyone can start a food truck business in California with no experience as long as they follow the steps we cover below. Following these steps will educate you about the process from start to finish, so you don’t need to worry about cooking, food truck expenses, or even business experience.

Learn more about each part of the process below.

Step 1: Evaluate the Market and Contact Restaurants in Your Area

Usually, our first step for starting a business in California is developing a business plan. However, when starting a food truck business, we recommend doing market analysis and speaking with people first. For example, if you plan on parking near bars or breweries, contact the owners of these establishments to see if they’re okay with that before you even start planning.

We also recommend reaching out to the city where you plan on opening your food truck business to see what the public events are like each year and if there is room for your truck. If you find that you’re not getting much interest, it’s time to move on to a different city or come up with a different idea.

Step 2: Form Your Business Plan

If you have the green light for your city and a few people who wouldn’t mind having a truck in their lot, it’s time to formulate your business plan. This plan will consist of the structure of your business, how you plan on making money, and much more. In your business plan, make sure you include the following information:

• The legal entity your company will be (LLC, sole proprietorship, partnership)
• A marketing plan and an in-depth analysis of the market and how you will reach people
• The expenses that your company will have and how much revenue you’re projected to make
• The names and contact information of people who will participate in the business
• A description of the products that you sell and how you will prepare your food
• A target market for your food truck
• The locations where you plan on setting up your food truck

Ultimately, you want to come up with a thorough description of your food truck business and what you hope to accomplish with it. Doing so will help you develop a plan, but the city you plan on operating in will also want to see this plan.

Step 3: Register Your Business

Once you have a plan, it’s time to complete the registration process. This is when you have to submit information about your business to the state of California and the town you plan on operating in. The good news is that once you have your business plan in place, providing information like this is a breeze.

To start your registration process, it’s important to visit the Secretary of State’s website to see if your business name is available. Once you can see that, purchase the domain (for online purposes) and register your business name. From there, it’s time to form a legal entity and register your food truck business.

When it comes to food trucks, there is a lot of liability involved. People will be eating your food, and if they get sick, they can sue you, so it’s best to separate your personal assets and business assets by forming a limited liability company (LLC) for your food truck. That said, you can choose any legal entity you prefer.

Step 4: Choose a Registered Agent in California

If you’ve decided to establish your business as an LLC or corporation in California, your next essential step is to appoint a registered agent. This is a required step when preparing your Articles of Organization, the document necessary to officially register your LLC or corporation with the California Secretary of State.

So, what is the role of a registered agent? A registered agent is an individual or business entity designated to receive critical documents on behalf of your business, such as tax forms, legal notices, lawsuits, and official communications from the government. Essentially, the registered agent is your business’s primary link to the state.

Who can be a registered agent? The registered agent must be a resident of California or a corporation authorized to operate in the state, such as a registered agent service. If you decide to act as your own registered agent, you’ll need to assign an individual within your company, as California law does not allow business entities to serve as their own registered agents.

For more specific details on the requirements for registered agents in California, you can consult the California Corporations Code.

Don’t forget that to run a business, you need to: register a business entity (LLC is the most suitable option, more details here), obtain an EIN (you can apply online here), open a business bank account (more details here), understand accounting and taxes (more details here), and register a domain and create a website (this is optional, you can do it here).

Alternatively, you can delegate all of this to a registered agent starting from $0 + State Fees and get everything done in 1 day. This can save you time and ensure everything is done correctly, leaving you to focus on growing your business.

Apply Online

Step 5: Purchase or Rent a Truck

The next step is to purchase a food truck. This is crucial as a truck can make or break your business. When it comes to purchasing or renting, we prefer purchasing because you have more creative freedom over the truck. For example, you can paint your logo on the truck, adjust the interior kitchen space, and make more changes to the existing floor plan. That said, purchasing a new food truck can cost upwards of $100,000, so if you want to start small, we recommend getting a used truck.

Still, you can also rent a food truck in California. There are plenty of food truck rental options, and some companies give you a lot of freedom with the truck. Additionally, some leasing programs may offer rent-to-buy options, which can help you mitigate some of the upfront costs.

Money aside, you’ll want to make sure the food truck comes equipped with what you need. Depending on the type of food you’re serving, we recommend looking into the following types of equipment:

• Gas or electric charbroilers
• Gas or electric griddles
• Grills
• Panini grills
• Gyro machines
• Hot plates
• Fryers

Some food trucks may also require specific niche equipment. For example, if you plan on making tacos, you’ll likely want a tortilla press.

Step 6: Find a Commercial Location

According to California state law, you also need a commercial location for your food truck. The law states that all food trucks need to operate with a commercial food facility. This needs to be a commercially licensed kitchen that can be expected for the health and safety of the people purchasing your food. You can either partner with an existing kitchen or rent a space that you can use to store and prepare your food. There are some rare cases where you can prepare food from home, but you’ll need a different type of license based on the food you prepare.

Another factor to consider about your commercial location is that you need to store your food truck there when it’s not in use. Therefore, you should invest in a location that has a garage or a security system to protect your food truck.

If you plan on renting a space, we recommend drafting a lease agreement to avoid complications. These can be complex legal documents, so we recommend working with a lawyer to prevent any problems.

Step 7: Obtain all Necessary Licenses and Permits for Your Food Truck

Starting a food truck isn’t as simple as some other businesses in California. You need more permits and licenses to ensure your truck is safe for the public. While most businesses only need a general business license, you’ll need more if you want to run a successful food truck. The types of food truck licenses you need include:

• Tax identification number (EIN or Social Security number)
• Mobile Facility Food Permit: A permit that requires approval from the California State Department of Housing and Community Development and may come with restrictions on parking, waste, lighting, food packaging, and much more
• Health Permit: You need one for the sale of edible goods in California
• Food Safety Certification: You must have one staff member of your food truck who has completed the state-approved Food Safety Certification Exam; this can be the owner or a staff member who prepared the food
• Food Handler Permit: The Food Handler Permit is required for each employee who handles food in your food truck
• Worker’s Compensation (Worker’s Comp): When you hire employees in California you need some type of Worker’s Comp for them

Depending on how you prepare your food, you may also need additional permits, so keep this in mind when starting a food truck business in California.

Step 8: Insurance for Your Food Truck Business

Insurance is also necessary if you want to open a food truck business. While most businesses can get away with insurance just for their business, you also need to insure your vehicles. Plus, you need to disclose aspects of your operation with the insurance company to avoid any problems. For example, they will likely charge you more if your food truck has gas lines running through it instead of just an electric stove.

This also applies to propane tanks for grilling and other cooking utensils. Make sure you consider these factors and be open with your insurance company to avoid any complications when it’s time to file a claim.

Step 9: Start Selling Your Food to the Public

The last step is to start selling your food. This step needs to be done carefully, and there are a few factors you should consider before you start. For example, it’s important to have enough inventory to start so that you don’t run out of supplies and upset customers. You also want to consider grand opening options at locations like state fairs, amusement parks, or carnivals. Ultimately, you have a lot of freedom with this aspect.

That said, you can also plan a special opening night at the location where you’ll be parking. You can coordinate with business owners to have them promote your opening, and you can help them promote the night as well. We also recommend investing in a good website so that people can check the menu before ordering to speed up the process. Social media and other online platforms are a great idea for getting the word out about your new food truck. We recommend creating a Facebook, Instagram, and Snapchat account so that people can share stories about your food.

Last but not least, focus on having good payment systems. Cash-only is a decent model for a food truck, but people don’t always use cash anymore. For this reason, we recommend partnering with a company like Square, Stripe, or Wise to process your payments. It’s also a good idea to have online payment options and card readers so that people can purchase your products.

Food Truck Business in California FAQ

Starting a food truck is a complicated process, so we want to answer all of your questions. Bellow are answers to the most common food truck business questions in California.

Are Food Trailers Legal in California?

Yes, food trailers are legal in California and follow many of the same rules as a food truck. The trailer needs to be registered with the California Housing and Community Development (HCD), and there’s a good chance that you’ll need additional permits to park it. Depending on the trailer, you might also have to keep it at a commercial location to follow zoning laws; this can be county-dependent.

How Much Is a Food Permit in California?

Depending on what you’re selling and where, food permits in California can cost upwards of $1,000. That said, most permits won’t cost you more than $250 per year. Still, some types of food can cost more than others to sell, so it’s important to keep this in mind. You need to pay this fee to sell food in California, so make sure you have the right permit for the type of food your food truck is making.

Do You Need a CDL to Drive a Food Truck in California?

No, you don’t need a CDL to drive a food truck in California. A CDL, or commercial driver’s license, is only required for vehicles that meet a specific classification, weight, and towing capacity. However, if you’re using a large truck to transport and cook food, you may need to apply for a CDL. When applying for a CDL in California, expect to pay between $150 and $200, depending on the type of vehicle.

Do You Need a Permit for a Food Truck in California?

Yes, you need a permit for a food truck in California. You may need the following permits depending on your operation:

• Fire certificate
• Seller or reseller permit
• Liquor license (for alcohol sales)
• Catering license
• Mobile food security permit
• Food Handler’s Permit

These are only some of the permits that you need to operate a food truck in California and you may need to complete certifications and have your workers complete them as well. Your food truck will also need to be inspected by the health department of the region where you plan on setting up shop.

Can Food Trucks Sell Alcohol in California?

Yes, a food truck can sell alcohol in California, but only with a liquor license. It’s important to note that some liquor licenses aren’t available for food trucks because of the nature of the business. The California Department of Alcoholic Beverage Control (ABC) can issue a specialty license that allows food trucks to sell alcohol, but this is only temporary. However, some vendors, like limo services, can have permanent licenses. For this reason, you’ll find many food trucks parked near bars or breweries that don’t serve food.

Start a Food Truck Business in California Today!

Food trucks can make a lot of money, but only if you play your cards right. Take the time you need to come up with a good business plan, places you can park, and a talented staff that can sell your products. While it’s not hard to file the paperwork and get started, starting any business in California is challenging and can be risky. Therefore, it’s important to understand the risks when starting a business to avoid financial troubles.

That said, make sure you have fun with it. We know that starting a business is stressful and time-consuming, but opening a food truck is a great way to share your passion with the world. Have some fun with logo designs, customizing your truck, and of course, the food you prepare.